WASHINGTON, May 31, 2024 — Yichang City in Hubei Province will transition to an environmentally cleaner transportation system with the support of a US$250 million loan approved by the World Bank Board of Executive Directors today. This initiative aims to improve travel for residents, lower greenhouse gas emissions, and potentially serve as a model for other cities.
China's investments in infrastructure have driven economic growth but also increased energy consumption and greenhouse gas (GHG) emissions. The transportation sector has experienced the highest rate of emissions growth.
The newly approved Low Carbon Transition of Urban Mobility in Yichang (Hubei) program will help enforce cleaner vehicle emission standards and retire older, heavily polluting freight vehicles and buses. It will support compact urban development that prioritizes public transit, walking, and cycling, make public transportation more attractive, and improve parking management. Additionally, the program will pilot the transport sector's participation in an emissions trading scheme. These efforts aim to help Yichang achieve its low-carbon goals while contributing to global carbon emission reductions.
Expected outcomes include increased average daily public transport ridership, improved accessibility to jobs within 60 minutes using green modes of travel, and reduced net GHG emissions.
“The Low-Carbon Transition of Urban Mobility in Yichang (Hubei) program is the first World Bank-financed transport operation in China to showcase a comprehensive suite of city-scale decarbonization interventions building on international best practices,” said Mara Warwick, World Bank Country Director for China, Mongolia, and Korea. “It provides a unique opportunity to establish a proof of concept for other cities in China and beyond.”
Program financing over five years is estimated at US$1.114 billion, with US$250 million funded through an International Bank for Reconstruction and Development loan from the World Bank and the remainder from the Chinese government.
The program aligns with the World Bank’s Country Partnership Framework (CPF) for China for FY2020 to 2025 by promoting low-carbon transport and reducing air pollution. It aids China in meeting its climate commitments while contributing to global public goods.
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